Wisconsin Small Business Owners Cheer Tort Reform Passage

Date: April 04, 2018

An important piece of tort reform legislation is now headed to Gov. Walker’s desk for signature, reported the MacIver News Service.

The measure, Assembly Bill 773, was passed during the Legislature’s “extraordinary session.” It will address the discovery process—the evidence-gathering process that takes place prior to a trial—and its skyrocketing costs to align Wisconsin law with the federal civil code on discovery, disclosure, and class action lawsuits.

AB 773 also goes further by making Wisconsin one of the first states in the U.S. to implement transparency over litigation financing. Currently, law firms and investors can secretly provide plaintiffs upfront money in return for pursuing lawsuits that have the potential to produce significant settlement payouts. AB 773 would require that these agreements be disclosed to the parties involved unless the court orders otherwise. In this regard, the federal government will be playing catch-up. According to a recent Wall Street Journal article, the Senate Judiciary Committee is considering legislation that would require class-action plaintiffs to reveal whether they are receiving funding to pursue the lawsuit.

NFIB/WI applauded the passage of AB 773, which will reinstate common sense in the Wisconsin legal process.

“AB 773 is a major victory for small to large Wisconsin businesses and will greatly reduce the cost of litigation,” Bill G. Smith, NFIB/WI state director as well as Wisconsin Civil Justice Council president, said in a statement. “The legislation brings Wisconsin in line with the vast majority of other states when it comes to its discovery procedures and class action rules.”

Considering Wisconsin’s “dishonorable mention” placement in the American Tort Reform Foundation’s 2017-2018 Judicial Hellholes report, AB 773 definitely moves the Badger State in the right direction.

 

Related Content: Small Business News | Legal | State | Wisconsin

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy